Sony keeps PSP production low, focuses on PS2
11-29-04, 04:28 PM
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Sony keeps PSP production low, focuses on PS2
http://www.gamesindustry.biz/content_page.php?aid=5680
Rob Fahey 10:08 29/11/2004
Consumer electronics giant being cautious in its approach to PSP
Low initial shipment figures for Sony's forthcoming PlayStation Portable are down to a decision to focus on manufacturing the profitable PlayStation 2 hardware, according to a spokesperson for the Japanese giant.
Comments attributed to SCE spokesperson Kenichi Fukunaga in an Agence France-Presse article stated bluntly that manufacturing resources are being directed to the PlayStation 2 - a new slimline version of which was introduced earlier this month - rather than the PSP.
"We are entering a phase where we profit greatly from PlayStation 2," Fukunaga-san told the agency. "It was a matter of reaching the optimum allocation of our resources."
Only 200,000 units of the PlayStation Portable are expected to ship in Japan in time for the launch of the system on December 12th, with a further 300,000 anticipated by the end of the year.
According to Fukunaga-san, this is down to a cautious approach on the part of the company with regard to the PlayStation Portable - perhaps as a direct result of the firm's embarrassing failure with the much hyped PSX home media system last Christmas.
"We are being very careful about this project," he confirmed. "We did not want to have lots of PSPs on inventory."
This approach contrasts with Nintendo's bullish attitude to its latest handheld console, the Nintendo DS, which launched in the United States last week and is expected to sell five million units worldwide by the end of Nintendo's financial year in March 2005.
Much of Sony's caution may be as a direct result of the low price point for the PSP, with the firm thought to be taking a significant loss on each hardware unit sold. Indeed, Fukunaga-san confirmed that the PSP business is not expected to be profitable for several years - compared to the Nintendo DS business, which is actually expected to contribute positively to Nintendo's bottom line for FY 2005.
However, the low price point should be beneficial for the device, he believes. "At that price, software houses should be encouraged to create game titles," he commented. "Competitive pricing and software titles should push up sales in the short run."
Chris
Rob Fahey 10:08 29/11/2004
Consumer electronics giant being cautious in its approach to PSP
Low initial shipment figures for Sony's forthcoming PlayStation Portable are down to a decision to focus on manufacturing the profitable PlayStation 2 hardware, according to a spokesperson for the Japanese giant.
Comments attributed to SCE spokesperson Kenichi Fukunaga in an Agence France-Presse article stated bluntly that manufacturing resources are being directed to the PlayStation 2 - a new slimline version of which was introduced earlier this month - rather than the PSP.
"We are entering a phase where we profit greatly from PlayStation 2," Fukunaga-san told the agency. "It was a matter of reaching the optimum allocation of our resources."
Only 200,000 units of the PlayStation Portable are expected to ship in Japan in time for the launch of the system on December 12th, with a further 300,000 anticipated by the end of the year.
According to Fukunaga-san, this is down to a cautious approach on the part of the company with regard to the PlayStation Portable - perhaps as a direct result of the firm's embarrassing failure with the much hyped PSX home media system last Christmas.
"We are being very careful about this project," he confirmed. "We did not want to have lots of PSPs on inventory."
This approach contrasts with Nintendo's bullish attitude to its latest handheld console, the Nintendo DS, which launched in the United States last week and is expected to sell five million units worldwide by the end of Nintendo's financial year in March 2005.
Much of Sony's caution may be as a direct result of the low price point for the PSP, with the firm thought to be taking a significant loss on each hardware unit sold. Indeed, Fukunaga-san confirmed that the PSP business is not expected to be profitable for several years - compared to the Nintendo DS business, which is actually expected to contribute positively to Nintendo's bottom line for FY 2005.
However, the low price point should be beneficial for the device, he believes. "At that price, software houses should be encouraged to create game titles," he commented. "Competitive pricing and software titles should push up sales in the short run."
Chris
11-29-04, 04:37 PM
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Oh whatever, they fudged the launch because:
a) shortages make gadget hounds (like me) foam at the mouth and want this exclusive piece of electronics even more
b) Sony has had issues this year with it's LCD display supply which has probably carried over to the PSP.
a) shortages make gadget hounds (like me) foam at the mouth and want this exclusive piece of electronics even more
b) Sony has had issues this year with it's LCD display supply which has probably carried over to the PSP.
11-29-04, 04:43 PM
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They're "profiting greatly" from the PS2? So where's my pricebreak? Now for sure I'm waiting to get a new slimline PS2, disc error or no disc error...
11-29-04, 05:16 PM
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Originally posted by fujishig
They're "profiting greatly" from the PS2? So where's my pricebreak? Now for sure I'm waiting to get a new slimline PS2, disc error or no disc error...
They're "profiting greatly" from the PS2? So where's my pricebreak? Now for sure I'm waiting to get a new slimline PS2, disc error or no disc error...
Jeez, they sell you a machine below cost for years, and now that they are turning a profit, you complain?They are just worried about getting burned like they did on PSX (no, not the original PlayStation, but the PS2 on steroids). They were left with tons of inventory because they simply didn't sell after the first few months.
I mean, crap, they have already ordered 700,000 units/month for the next year. If everything goes well, then they will get the orders. If not, then they cancel the orders and proclaim defeat.
Of course, its going to be a huge success and they will have 10 million units out there by 2006.
12-01-04, 12:36 PM
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And then on the other hand!
http://www.gamespot.com/news/2004/11...s_6114197.html
PlayStation 2 shortage rattles shoppers
Sony confirms the company's new slimmed-down console is in short supply at many retailers; says more are on the way.
Don't panic.
That's the message from Sony, which Tuesday confirmed what a growing number of holiday shoppers and eBay bargainers already knew: The company's PlayStation 2 video game console is in short supply at many retailers.
But the company said it's ramping up production and doing all it can to get more consoles in stores quickly. "Consumer demand for the new PlayStation 2 has exceeded our expectations, and we are doing all we can to fulfill the wish lists of people who want a new PlayStation 2 unit under their trees this holiday season," a representative of Sony Computer Entertainment America said.
The shortage stems from the new slimmed-down PS2 design Sony announced earlier this year. Sony has been clearing out supplies of the original PS2 configuration for the past few months, and the company has been unable to push units of the new design into the market fast enough to meet holiday demand.
The extent of the shortages was difficult to gauge, but the trusty old eBay-meter indicated mild shopping alarm. New PS2 consoles in the revamped design, nicknamed "PS2 Slim," were selling for as much as $230 on Tuesday, which is well above the $150 list price.
Availability was spotty among major online retailers. Amazon.com showed "PS2 Slim" units available only from Amazon Marketplace affiliates, who were charging as much as $350. CompUSA had units available only for in-store pickup, with none in stock at San Francisco Bay Area or Manhattan stores. Specialty retailers GameStop and EB Games both showed all "PS2 Slim" packages as back-ordered.
Shortages appeared to be most acute in Europe, where London newspapers reported some desperate shoppers were paying the equivalent of $750 (400 pounds) for a new PS2. "Everywhere I try seems to be out of stock," "Bill C." wrote in a posting on a Usenet group for British bargain hunters. "The standard response seems to be, 'Sorry, there is a national shortage; should be in by Christmas though.'"
Analyst P.J. McNealy said the shortage could be a boon for competitor Microsoft, if Sony can't restock shelves before shoppers get really impatient. "We believe that Microsoft...continues to benefit from Sony shortages with Xbox console sales," he wrote in a report published Tuesday.
By David Becker -- News.com
POSTED: 11/30/04 06:28 PM PST
Chris
PlayStation 2 shortage rattles shoppers
Sony confirms the company's new slimmed-down console is in short supply at many retailers; says more are on the way.
Don't panic.
That's the message from Sony, which Tuesday confirmed what a growing number of holiday shoppers and eBay bargainers already knew: The company's PlayStation 2 video game console is in short supply at many retailers.
But the company said it's ramping up production and doing all it can to get more consoles in stores quickly. "Consumer demand for the new PlayStation 2 has exceeded our expectations, and we are doing all we can to fulfill the wish lists of people who want a new PlayStation 2 unit under their trees this holiday season," a representative of Sony Computer Entertainment America said.
The shortage stems from the new slimmed-down PS2 design Sony announced earlier this year. Sony has been clearing out supplies of the original PS2 configuration for the past few months, and the company has been unable to push units of the new design into the market fast enough to meet holiday demand.
The extent of the shortages was difficult to gauge, but the trusty old eBay-meter indicated mild shopping alarm. New PS2 consoles in the revamped design, nicknamed "PS2 Slim," were selling for as much as $230 on Tuesday, which is well above the $150 list price.
Availability was spotty among major online retailers. Amazon.com showed "PS2 Slim" units available only from Amazon Marketplace affiliates, who were charging as much as $350. CompUSA had units available only for in-store pickup, with none in stock at San Francisco Bay Area or Manhattan stores. Specialty retailers GameStop and EB Games both showed all "PS2 Slim" packages as back-ordered.
Shortages appeared to be most acute in Europe, where London newspapers reported some desperate shoppers were paying the equivalent of $750 (400 pounds) for a new PS2. "Everywhere I try seems to be out of stock," "Bill C." wrote in a posting on a Usenet group for British bargain hunters. "The standard response seems to be, 'Sorry, there is a national shortage; should be in by Christmas though.'"
Analyst P.J. McNealy said the shortage could be a boon for competitor Microsoft, if Sony can't restock shelves before shoppers get really impatient. "We believe that Microsoft...continues to benefit from Sony shortages with Xbox console sales," he wrote in a report published Tuesday.
By David Becker -- News.com
POSTED: 11/30/04 06:28 PM PST
Chris
12-01-04, 12:47 PM
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Smart on their part. It's hard to tell how well the PSP well sell. It will sell well to hardcore gamers and tech geeks who have to have the lastest gadget.
What will determine it's success it how well it sells to casual gamers (who probably have little interest in gaming on the go) and kids who already have GBAs and/or DS's.
What will determine it's success it how well it sells to casual gamers (who probably have little interest in gaming on the go) and kids who already have GBAs and/or DS's.
12-02-04, 01:14 PM
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http://www.gamesindustry.biz/content_page.php?aid=5759
Sony faces global PS2 shortage; US Xbox stock also low
Rob Fahey 13:14 02/12/2004
Channel-draining exercise backfires for Sony as retailers run out of stock
Sales of console hardware are being severely impaired in all major global territories by severe ongoing shortages of the PlayStation 2, while some US retailers are also reporting low availability of the Xbox.
Major shortages of the PlayStation 2 console have been ongoing since the end of Summer in some areas, but have reached a head following the launch of the redesigned slimline "PStwo" - which massively increased demand for the system.
The situation is believed to be most severe in Europe, with the vast majority of retailers in the territory completely out of stock, although further shipments are hoped for by Christmas.
However, the USA is also experiencing severe shortages, and the unfulfilled demand in both territories is leading to significant price premiums being paid for new hardware on online auction sites such as eBay.
Although Microsoft is believed to be benefiting from Sony's difficulty in fulfilling demand for the PS2, the situation isn't entirely rosy for the rival firm either, with US retail sources indicating that Xbox stock is also in short supply.
"Consumer demand for the new PlayStation 2 has exceeded our expectations," admitted a Sony Computer Entertainment America spokesperson in a statement yesterday, "and we are doing all we can to fulfill the wish lists of people who want a new PlayStation 2 unit under their trees this holiday season."
Much of the problem is believed to be down to Sony's policy throughout late summer and early autumn of bleeding the distribution channel dry of the original PlayStation 2 in order to clear it out for the arrival of the slimline model.
The company has failed to restock the channel with the new model, and a combination of demand for the slimline console and pent-up demand caused by the shortages throughout autumn saw the console selling out its first shipment in a matter of days at many retailers.
Earlier this week, a Sony representative in Japan announced that the firm was keeping production of the new PlayStation Portable handheld system low in order to focus more strongly on producing the PlayStation 2 console.
Chris
Sony faces global PS2 shortage; US Xbox stock also low
Rob Fahey 13:14 02/12/2004
Channel-draining exercise backfires for Sony as retailers run out of stock
Sales of console hardware are being severely impaired in all major global territories by severe ongoing shortages of the PlayStation 2, while some US retailers are also reporting low availability of the Xbox.
Major shortages of the PlayStation 2 console have been ongoing since the end of Summer in some areas, but have reached a head following the launch of the redesigned slimline "PStwo" - which massively increased demand for the system.
The situation is believed to be most severe in Europe, with the vast majority of retailers in the territory completely out of stock, although further shipments are hoped for by Christmas.
However, the USA is also experiencing severe shortages, and the unfulfilled demand in both territories is leading to significant price premiums being paid for new hardware on online auction sites such as eBay.
Although Microsoft is believed to be benefiting from Sony's difficulty in fulfilling demand for the PS2, the situation isn't entirely rosy for the rival firm either, with US retail sources indicating that Xbox stock is also in short supply.
"Consumer demand for the new PlayStation 2 has exceeded our expectations," admitted a Sony Computer Entertainment America spokesperson in a statement yesterday, "and we are doing all we can to fulfill the wish lists of people who want a new PlayStation 2 unit under their trees this holiday season."
Much of the problem is believed to be down to Sony's policy throughout late summer and early autumn of bleeding the distribution channel dry of the original PlayStation 2 in order to clear it out for the arrival of the slimline model.
The company has failed to restock the channel with the new model, and a combination of demand for the slimline console and pent-up demand caused by the shortages throughout autumn saw the console selling out its first shipment in a matter of days at many retailers.
Earlier this week, a Sony representative in Japan announced that the firm was keeping production of the new PlayStation Portable handheld system low in order to focus more strongly on producing the PlayStation 2 console.
Chris
12-02-04, 01:29 PM
#9
DVD Talk Hero
"following the launch of the redesigned slimline "PStwo" - which massively increased demand for the system."
Are that many people double-dipping to the tune of 150 bucks to get a redesigned PStwo? I know a lot of us are, but we're videogame fanatics... I wouldn't think that most "regular" people would care one way or another. Unless the disc-error is more widespread than I thought...
Are that many people double-dipping to the tune of 150 bucks to get a redesigned PStwo? I know a lot of us are, but we're videogame fanatics... I wouldn't think that most "regular" people would care one way or another. Unless the disc-error is more widespread than I thought...
12-02-04, 02:52 PM
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DVD Talk Godfather
Originally posted by PixyJunket
I see these everywhere. I should pick some up for an $80 profit.
I see these everywhere. I should pick some up for an $80 profit.
edited - just checked ebay. most are only going for around $160-$180. Not worth the hassle.
12-10-04, 09:22 AM
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http://www.gamespot.com/news/2004/12...s_6114764.html
Got PS2? Sony reacts to hardware shortfall with unusual plan
Sony reportedly addresses PlayStation 2 shortages by air freighting units directly from factories in China. Analysts wonder: To what end?
Sony officials today confirmed to Reuters that the company was using the expensive means of air freight to get as many PlayStation 2 units as possible onto console-starved retailer shelves in the US. The units are being flown directly from manufacturing facilities in China to US shores, according to Reuters.
The unidentified spokesperson said the practice had been going on "for some time."
The industry has been watching the PS2 shortage story play out now for months. In a memo sent to investors this morning, Friedman, Billings, Ramsey & Co. analyst Shawn Milne said, “As expected, PS2 supply remains an issue.” He projects that a shortfall of just 200,000 units would impact publishers of PS2 software to the tune of $11.6 million. That’s more than $11 million in lost revenue.
"We lowered our PS2 hardware unit assumption to 2.75 million in the December quarter from 3.1 million in the year-ago quarter and slightly reduced our PS2 software growth estimate from 10 percent to 8 percent. We believe the PS2 hardware shortfall may limit upside in software sales in the quarter," Milne said in the memo.
American Technology Research analyst P.J. McNealy told Reuters, "The additional costs could cut any margin [Sony] makes on the PS2 unit nearly in half." He commented that even in spite of the extra efforts Sony is going to take to address the shortfall, it likely won’t be enough to prevent shortages in some markets.
Industry analyst Boris Markovich of TerraNova Institutional told GameSpot today, "Sony bled the channel dry of the older PS2 systems but did not ramp the new hardware fast enough to satisfy consumer demand." Still, he didn’t sound entirely critical. "Clearly, Sony is trying to do everything it can in order to satisfy retailer demand for the hardware."
But "everything" may not even be enough. Markovich concludes that today's November revenue figures released by sales tracking company NPD reflect the ongoing shortages of PS2 consoles. "We believe that today's weaker-than-expected NPD results of only 2 percent industry growth in November were directly attributable to the PS2 shortage."
By Curt Feldman -- GameSpot
POSTED: 12/09/04 06:07 PM PST
Chris
Got PS2? Sony reacts to hardware shortfall with unusual plan
Sony reportedly addresses PlayStation 2 shortages by air freighting units directly from factories in China. Analysts wonder: To what end?
Sony officials today confirmed to Reuters that the company was using the expensive means of air freight to get as many PlayStation 2 units as possible onto console-starved retailer shelves in the US. The units are being flown directly from manufacturing facilities in China to US shores, according to Reuters.
The unidentified spokesperson said the practice had been going on "for some time."
The industry has been watching the PS2 shortage story play out now for months. In a memo sent to investors this morning, Friedman, Billings, Ramsey & Co. analyst Shawn Milne said, “As expected, PS2 supply remains an issue.” He projects that a shortfall of just 200,000 units would impact publishers of PS2 software to the tune of $11.6 million. That’s more than $11 million in lost revenue.
"We lowered our PS2 hardware unit assumption to 2.75 million in the December quarter from 3.1 million in the year-ago quarter and slightly reduced our PS2 software growth estimate from 10 percent to 8 percent. We believe the PS2 hardware shortfall may limit upside in software sales in the quarter," Milne said in the memo.
American Technology Research analyst P.J. McNealy told Reuters, "The additional costs could cut any margin [Sony] makes on the PS2 unit nearly in half." He commented that even in spite of the extra efforts Sony is going to take to address the shortfall, it likely won’t be enough to prevent shortages in some markets.
Industry analyst Boris Markovich of TerraNova Institutional told GameSpot today, "Sony bled the channel dry of the older PS2 systems but did not ramp the new hardware fast enough to satisfy consumer demand." Still, he didn’t sound entirely critical. "Clearly, Sony is trying to do everything it can in order to satisfy retailer demand for the hardware."
But "everything" may not even be enough. Markovich concludes that today's November revenue figures released by sales tracking company NPD reflect the ongoing shortages of PS2 consoles. "We believe that today's weaker-than-expected NPD results of only 2 percent industry growth in November were directly attributable to the PS2 shortage."
By Curt Feldman -- GameSpot
POSTED: 12/09/04 06:07 PM PST
Chris
